(Part 5, NTUST, 5908701)

Part 5, Advanced Civil Construction, 台科大高等土木施工學教材(2023) 

MT KAO (Blog: http://mtkaoforum31.blogspot.tw/)

(mtkaoforum31@gmail.com)

6. Remuneration, Feeling of Fulfilment, and Chances of Promotion in Different

    Entities.

   

1) Academy 

a. Nationalization and bureaucratization of educational institution.

-  In medieval Europe, universities meant a place where students from everywhere were welcomed as they shared the common language-Latin and religion- Christianity. They were taught the arts and had at least one of the higher faculties (theology, law or medicine), by those with a master's degree. So, the term was studium generale as the aim was to provide students and the general public academic foundations in line with the humanistic roots.

- And the changes begun from Germany in 19th century, the academic study was considered more essential than to disseminate the knowledge to students and the general public as Von Homboldt maintained in his Berlin University. Instead now that the students were asked to select a topic, profession, or social problem conduct research on the subject, maintain a portfolio of findings or results, create a final product demonstrating their learning acquisition or conclusions.

 

The capitalist American went farther to introduce the ideas for universities and the colleges to become “technology research center” either by accepting chunky donation from privates or obtain funds in collaboration with big companies for programs. As the result, the “university” actually is “multiversity” and become kind of “knowledge industry” entice the talents and transform them to be “useful” in the market.

- As it evolves, there’re many academic communities of different scientific subjects established in the universities. The institutes have to achieve the goal assigned to them in the research program and so require the combined effort of various faculty members for minimal multiplicity. And it means the organizations have to be sizable to include scholars of different disciplines; specialists, technicians, and in some cases, the managers.

And because only the government or the donors can pay the money to sustain an organization of meaningful capacity, the nationalization and bureaucratization of the university is unavoidable. Then the autonomy of faculty is gone that the professors has to respect the imposed hierarchy, follow the government procurement law, honor the quantified evaluation system. And it means, the young men decide to work in the academy for life needs to know everything about scholar’s recruitment, pay, and promotion as many of the civil servants do.

There can be countries with thrive industries and successful businessmen granting huge sums of money to the university. For all their best intension or pragmatism to inspirit innovation, the receiving parties may proceed to employ needed people for the advance study programs not related to teaching and study. 

In addition to the salaries and bonus given to the scholars and specialist, tools, software and apparatus required to advance the innovation can be paid, thus facilitate the general study as well. 

Therefore, the conventional boundary between the ivory tower and the outside world is blurred. Lucky or not, the campus grows and aggrandized; but it looks as if it were a technical center of big company, buoyed, motived and boosted by the same market force plumped the industry.

 

- Cambridge and Oxford could be the last to insist its tradition that the university should bend on the “liberal education” to nurture the gentlemen. But in 1956, the UK government astonished that the country lagged much behind the US and Soviet Union in technology and science; had to issue a whitepaper for higher education mainly to accept the promotion of Colleges of Advanced Technology (CATS) to university level. 

The UK faculty leaders shared the government’s view realizing the fact there should be scientific culture in addition to the humanity culture, and the “Argument of Two Cultures” had to come to a hold. 

- In certain countries the university can be supported by charities, donation and wealthy alumni just like the universities and graduate schools in the American Ivy Leagues so as to be free from the government interference. 

b. Fate, connections, and politic may play part in the assignment and promotion of faculty positions.

- In theory, the assignment and promotion in the public faculty will be fair because the qualification set for the contested is stringent and people responsible to smack the decision are supposed wise and objective in such an independent organization. But in practice, the odd is high that the un-qualified may win out as they know how to use the connection and politic skillfully.

So, for those who expect the meritocracy will prevail in keep the academic body lean and competent can be disappointed.

The other side of the coin is when universities are funded by public money the regulations for personnel management are rigid, and less influenced by the powerful or the unprincipled. 

- Sometimes, the faculty may have their unique requirement for particular topics for researches, they may recruit scholars who would provide talent at that special moment and then they may start academic career; it’s the fate. The opposite also is true when an eligible can’t be picked over years just because lack of luck.

c. Inspiration, heart and soul are still required in developing scientific and engineering theories.

- People get fame in academic career may claim later that there’s no coincidence in his success and tell the young man to work hard because scientific and engineering theories can only be accomplished through endeavor. It’s true but not necessarily that the hard work will invite the success. Young starters have to learn that the aspiration is required in the process to initiate an idea, fill the void and perfect the defect. 

- in develop some theory in their career, often the people will place their attention more on time and effort they’ve spent over the issues and await the aspiration come to add favors on the plain calculation. It’s not realistic and people has to have heart and soul if they want to do scientific study. 

- People who are mediocratic actually shall avoid to pursue the academic achievement. 

d. Limited monetary remuneration augmented with infrequent plaudits complete full reward scheme of scholars.

- Monetary remuneration is limited for people working in academic. There may be something in compensation for the low income, that is the feeling of fulfillment and achievement. 

A real scholar will feel happy when he discovers or believes that he will be able to offer next generation people a branch of knowledge, though may not be perfect or permanent, even the plaudit is short and rare.

- However, the modern university may change. As we said, it will change to “knowledge industry” in collaboration with companies thirsty to find collaborators for technology improvement. We’ve witnessed big business pour in chunk of money to finance faculty in an unprecedent manner. 

The law also modified to allow people other than pure wonks join the faculty to conduct researches; and the pay is not subject to any limitation. Bonus and other incentives are offered to the people who’re supposed to be acclaimed for their virtue.   

2) Professional entities such as architects and consulting firms

a. The professionals don't produce, manufacture or build, they offer design report and solutions based on expertise that can hardly be quantified; so, they receive bonus and prize based on subjective review in addition to the fixed salary.

People who’re admitted to big architect and consulting firms are expected to listen to the orders and to begin as a simple part of complicated machine. Remuneration wouldn’t be high as the company consider you gain more in learning as new comer.

Promotion, or work adjusted for next stage seem to be taken grant; but mainly depend on your altitude. 

b. Managers of architects and consulting firms are critical to create a sound work environment for efficiency, recruit people of high talent, take the lead in competition, recognize and reward those who work hard with decent pay, and find the new customers and win their trust; so, they deserve high income.

Even though the market is not small in some of the countries, the architects and consulting firms would have their fix clients. The relationship cultivated are between, in most of the cases, the institutions and not the individuals. It’s very apparent in Taiwan, and the individuals have to be careful in asserting their business credit.

 

c. As a trend and also out of necessity, capital gains such as profit, dividend, interest, rent and royalty are offered to the employees in the form of company stock, partnership, or special agreement.

When the majority of shares held in government or big organization, the persons in custody tend to be more conservative and the not the persons running the company lose an effective tool to manage the company. It’s the situation for the two biggest civil engineering consultants in Taiwan. 

d. The rates and prices of consultancy contracts are low by international standard, so that the professional’s pay is restrained in Taiwan. 

The professionals, especially those in the consultant firms, have to work long time to get enough money compared to the engineers working in the other countries. The difference in annual remuneration between the senior and junior engineers are not so much and it decreases the incentives of the employees. The reasons are again, partly due to the government’ holding of the shares for big consulting company. 

The small, private and localized consultant firms always submitting low price is also the reason that the professionals in Taiwan don’t have good income as their foreign counterpart.  

The civil engineering consultants always require top talents, but, many of them ceased to work hard for the nature of the company and the difficulties to draw a smooth and reasonable clear path; many of them are said to have early retirement. Recently, it’s improving at least for the employees as demand is increased.

3) Construction firms

a. Contractors command more resources than any other players in the industry and the pay difference among their staffs is significant and decided by project profit and loss.

For the same project, different managers will significantly make the resulted profitability completely different. Therefore, the bosses will carefully choose the manager or won’t delegate any power to the under in the case of small company. And for big project, it requires good manager(s) and qualified staff to work around the clock. There’s nothing but to offer strong incentives as the boss is concerned. 

And it means, a devoted and smart employee will be able to distinguish himself in the construction firms. 

b. In Taiwan, the owners prefer low cost and hasten progress with obsession. So always construction companies are put under extreme pressure to meet contractual requirement, and only staff (leading by a relentless boss) can withstand the grinding work condition will get higher pay and the employment, not much to do with their proficiency, not mentioning feeling of achievement.

c. Reformation that allows the constructor to do the works in design and build has been introduced to the market, and now that the industry is less fragmented so the construction firms can grow and allow the professionals either technical or managerial developing their skill and climbing the company ladder. 

d. Specialty contactors if have more control on expertise shall be more dominant as the nature of the works now are more than simple concrete pouring and rebar binding when economy evolved and the project more complicated.

4) Government Employees 

a. In Taiwan and many Asian countries, the government employees are prestigious and respected despite its low salary and limited power. The reasons may be the employment is permanent and the work isn’t manual. In the case of civil engineering, the mandarins are responsible to certify the progress in every stage and accept the completed stuff of the project, highly influential to the public works and the contractors. So, it can be the top choice of graduates.

b. But as the economy grows the government enact many laws and regulations, which aren’t flexible in nature for implementation but the civil servants need to follow. In addition, the politicians, media and public frequently overrule the professed opinion; making young engineer uncomfortable and hesitate to go after the government posts. 

c. At the time when resources were scarce, only the government would be affordable to import construction technologies and appeal to the talents to work for big projects. It’s attractive for engineers. Now that working for private companies could get even better access for modern technology under more discerning evaluation. The incentives for young talents to work for government are drastically reduced.

5) Bosses or self-employed

a. In a market-oriented economy, the individuals are free to exercise will and power in their own enterprise plus that the sub-let system in Taiwan will allow new comers to deliver the works easy; then the threshold to start construction business looks low. Many young people thus select to become entrepreneurs before they can learn something as other’s employees.  

b. A contractor needs capital, follow engineers, business connections, access to resources required for execution, and above all a mentality to lead the teammates you want to summon for successful performance; therefore, it requires years of experience. But the rigor and aggressiveness to found an enterprise will only be attached to a young brain, then you’ve to determine whether to be boss or self-employed at early stage of your life.

In other words, “connection network’ shall be critical for the young professionals seek to establish their own business. It can be supported by family or friendly ties; but most importantly, the future boss shall look carefully into his own personality and take opportunities.

c. However, construction people often risked to become accomplices of authority, super or sub tier contractors stealing public money. The temptation is overwhelming: providing bad material, not build according to the drawing, faulting the contracts. The bosses always excuse themselves for the need of survival. But actually, they like to enjoy lucrative contracts and believe they’re well protected. 

Nevertheless, the systematic fraud could be exposed and the professionals forsaking ethic principles would be sacrificed by the politicians. 

Unlike many countries in developing worlds, Taiwan escaped endemic corruption during and after the days massive infrastructure projects are under construction. If you want to be a boss in Taiwan, the risk is smaller.

d.   The boss of modern days construction company practically needs to know he shall also be a good manager in an organization to lead a team of knowledgeable workers, who are skilled, motivated, and challenge-seeking. It is because whether or not the business will survive, prosperous and develop will depend on the boss’ ability to articulate a vision of the future to inspire the people. It is necessary to let them believe their future are included in your plan.

In other words, people need to examine before they want to become the bosses or super managers in the engineering or construction companies, their competency of technical and interpersonal skills including being open to the truth, treating everyone fairly and equally and sticking to their principles.

Also, the boss must be sure that himself shall equip with an intelligence to embody the value of his organization, impose the integrity on the follow professionals, and culture the resilience to maintaining the momentum of the organization when business is in setback.

 

(Part 4, NTUST, 5908701)

Part 4, Advanced Civil Construction, 台科大高等土木施工學教材(2023)

MT KAO (Blog: http://mtkaoforum31.blogspot.tw/)

(mtkaoforum31@gmail.com)

 

(1). Banks

 

Banks offer credit lines, grant loans, and acting as agents to collect or pay bills, draft, and cheques to companies or individuals doing business of construction and engineering.

 

Banks issue guarantee letters or cheques to the clients for bid bond, performance bond, advance payment bond, and warranty bond at the request of construction companies, design consultants, professional engineers, and architects.

 

In many cases, banks will issue letter of credit for contractors to buy equipment, material and service required to complete the project.

 

There will be overdraft facilities for companies to pay outstanding cash amount reasonably required in performing contracts.

 

Banks will evaluate the profitability, sizes, collateral, and reputation of the company, and grant them credit lines or loan, and quote the premium and interest rates subject to fluctuation over time.

 

There is possibility that the banks agreeing to offer loans for BT, BOT, or BOO projects, based mainly on feasibility, completion guarantee, and the ultimate owner of the projects (and in the case of overseas projects, the government and the owner). Usually commercial banks need backups of fund, investment companies or even state.

 

When construction related entities wouldn't obtain the credit lines as required or the existing credit amount sharply reduced, they could be pushed toward insolvency. The consequence usually is very serious and could probably invoke chain reactions for subcontractors and sub vendors for several times the amount main contractors indebted.

 

If the state won't go for rescue, banks, subcontractors, vendors, their employees will be induced for damages like the case happened to the second biggest contractor, Carillion of UK (https://www.arlingclose.com/insights/what-happened-with-carillion). But normally in a democracy, no sane politicians will vote continuing to finance the troublemaker, that's why banks are cautious in Taiwan.

 

(2). Insurance Company

 

a.      Most of construction contracts need insurance company to provide coverage for damages to property and persons related to the projects unless it happens due to excepted risks.

 

The employers wish themselves and the follow contractors to be compensated for maximum and paying fee in minimum. The public work owners are big customers so they will prescribe what they want in the contract document, and insurance companies and the contractors usually will comply the stipulation.

 

However, in many occasions the crooked contracting parties, seeking to reduce even very few percent of the insurance premium, will ask acquiescent insurers to provide conforming policies with covert agreement deleting the critical clauses demanded by the employers.

 

Though the insurance companies ostensibly are more law abiding these days, but there are brokers sticking to the old way doing business. It’s not fair to the honest contractors.

 

b.      Compensation to the contracting parties poses as a hard bargain when perils occur. The appraisers' proffer can be wide ranged and unpredictable. The approaches are much influenced by the commercial interest of the insurance industry, which is conflicting to the requirement of the insured, not mentioning the request of the endured.

 

The reality in Taiwan is that many of the contractors don’t pay much attention in safety requirement and spend money for proper construction facilities. When peril occurs, the insured may come up with plumped figures and ask for compensation.

 

There were stories that the re-insurer like Lloyd's of London rejected to reinsure tunnel work construction of Taiwan in 90's as many "Names" losing so much money. There were days that many tunnel failures occurred in Taiwan, whether or not they were the result of complicated geological condition or insured’s wicked intention o solve the progress and cost problems, we didn’t know. But we understand that the local appraisers and insurers weren’t innocent.

 

c.      Note always the proposed settlement has more to do with the commercial convenience of the insurers than what the contractors ought to accept. In other words, the staff and the managers of the contractors shall resist the mesmerizing persuasion by the policy sales and appraisers.

 

The insurance policy buyers shall study words by words for the compensation clauses attached to the main policy; and be careful about the practicality of the blockers, insurance company and appraisers before they procure the policies.

 

d.      In the United States, the project surety is issued mainly by insurance company or bondsmen for the full contract amount or its double. It's a different philosophy that the US employers want to be guaranteed for in-time and quality project completion so the insurer or bondsman needs to provide greater than or equal amount of project value to convince the employers that they'd have ability to finish the works.

 

And in place like Taiwan, the employers demand pays immediately an amount no less than their loss in the project with reservation that they can claim the difference of their loss later. Once people in Taiwan advocated that the insurance company can issue policies to serve as performance bond or for other purpose but find it difficult to implement, so the alternative only remains on the law.

 

e.      The insurance companies are involved so much in the construction projects, they're indispensable, but many in the industry including high ranking persons have wrong concept toward the insurance. The biggest problem is they can't distinguish the difference between contingency cost and insurance premium paid, the mistakes come from that they considered everything can be covered by insurance.

 

They may recognize there should be price escalation and it has been covered by inflation formula, and they continue to think that any other risk shall be identified and priced in the work items and a risk that can't be named shouldn’t be a risk. 

However, an experienced constructor will perceive that it is a cost attached to the project only in a way that nobody will know how and for what magnitude it will happen.

 

Finally, people responsible to establish the project budget will consider the contingency provision shouldn’t be entered for unnamed items lest it should become the additional profit of the tenderer. It’s wrong but widely accepted by the officials here.

 

(3). Investment Company or Fund

 

The international investment company or fund strolled around the globe seeking opportunity for investment in infrastructure projects as they felt revenue should be stable and return lucrative. But they were meticulous in Taiwan as they cared about the risks in design, construction and operation of those projects may not be in a way they’re familiar with.

 

The tedious regulations imposed by the government and "not in my backyard" populism would be detrimental to the budget and progress issues which are most critical to the infrastructure projects: returns are slower and lower, financial overburden heavier, and the market changes cancelling the necessity of the projects. And in the extreme case, the franchise company can be bankrupted.

 

So, the international investment company or fund including Japanese trading houses have to wait until now, start to buy shares of solar power plants, wind mills and sewage system when they feel the government, industry and the related player are more matured with regards to PPP initiative.

 

The international investment company or fund do bring in another risk mitigation concept: placing more emphasize on unanticipated and disadvantageous market changes in demand or supply, and the long-term interest rates and the underlying asset value; subject to variation in the so-called risky macro environment.

 

There can be two types of investment in infrastructure projects: one is to secure the opportunity for investment when everything is still blank considering that the profitability is proportionate; the other is to take over the project when everything is known and the return fixed shunning of risks.

 

In Taiwan the real estate business elicits capital and talent for its high growth and profitability. Developers are busy to hunt lands, deal with building codes, handle design and construction, and sell house and mansions, that they're not so interested in PPP initiatives. They could be tomorrow’s investors for ppp (public-private partnership) initiatives.

 

(4). Operator

 

After completing the public facilities, the government agencies or the private plants or building owners need people to do operation, functional checks, servicing, repairing or replacing of necessary devices, equipment, and machinery; and sometimes for system adjustment and expansion. The requirement hastens the delivery of the new facilities while many of the owners don't have the experience to do O&M especially the government agencies under recruitment, financial and efficiency restraint.

 

They're O&M companies, which should be an inseparable part of construction industry, always working under the poor financial conditions as politicians and capitalists over the world are good at dispense money for new fund buildings and facilities but less generous for their operation and maintenance. But now it is different.

 

Technicality will also be favorable to the O&M companies. The Engineers and the Contractors alike need the Operators' feedback to get sufficient knowledge for new facilities. 

And it's a tendency that the government prefer to using public–private partnership for O&M of the facilities to solve problems of lacking of flexibility in financial support and employee’s recruitment.

 

Over the years, the owners, government or private will ask the contractors to offer engineering, construction, plus O&M; there will be different models, and more sophisticated management contract will include improvements in efficiency and performance, which only is possible to include as much scope of service in one hand.

 

As it evolved, the Operator may be required to collect bills on behalf of the utility company, and may accept some collection risk, especially the clients are governmental, and the customers will be general public.

 

Engineers of next generation must think about whatever he will be, it tells of tomorrow’s engineers to realize the profession is service oriented, and to follow money's lead.

 

3)      Third-Party Participants: notaries, law firms, inspectors, laboratories, certifiers, appraisers, unions, arbitrators

 

The modern construction contract bring in piles of paper plus those un-printed storing in the computer, most of them presented as letters, reports, records, sketches, lists, certificates, diagrams, affidavits, pamphlets, photos, books, all of them filled with words, lines, symbol, sound, totem enough to decide the success or failure of the projects, though nobody is able to read through.

 

It's more than computer technology that the frontage players, supporting entities and participants of construction contracts all are the accomplice to ask for more document. For example, when contractors want to get loans, the banks may ask them to get reports from law firms to examine the contract conditions and to ensure the applicants are accepting everything. Or, the clients may demand the records of successful operation in completed facilities, certain laboratories may be asked to do the inspection works and submit the reports accordingly.

 

When the required documents bearing the names of the supposed independent party and showing the subject party has met the requests are received by the enquirer, it will be deemed as true and authentic. And as it evolves, there will be development such as:

 

* The party which demands information only trust prints from certain parties. Because the former now depend on the latter to identify the authentication of submissions from strangers or aliens.

 

* Though that the verifying party shall be independent and only responded to the requesting party, but the demanding party will have a big say to recommend the "right" verifying party; and in most of the cases, the requesting party will comply.

 

* If the verifying party has long working relationship with the requesting party, he would have more confidence to verify what he needs to verify within sort time frame, though they are independent and neutral. It happens to law firms, inspectors, laboratories, certifiers, appraisers, and arbitrators.

 

The industry reward regular customers, so big companies that always have more chances to contact third party participants will find it's easier and more swiftly to work out required document demanded by their clients. It's the same that the independent parties or organizations who are reputable in their domain also receive more recommendation from establishment.

 

Languages and culture should be the problem but not the only, the reality of the world is that the westerners will go to international arena using contracts, codes, standards, specification and practice the same as what are used in their homeland. The advantage is more apparent when the third-party participants with fame are confident to endorse them; actually, sort pf fortification.

 

Asian contractors go out to compete international giant, would have encountered invisible barricades, sometimes can be fatal to the projects. The story can be simple just because he wouldn't be familiar to and get supported by the established third-party participants who historically are not accustomed to working with oriental minnows. Right now, they’re real third-party participants.

 

Despite its laissez-faire appearance, 21st century capitalism is complicated in its work division, allocation of added values and borderless monopoly to collect rents.

 

In construction industry, the conventional added value attached to exercise of craftsmanship and dexterity to maneuver the machines now become relatively small as competition is harsh between the same contractors of developing economies. The new added value is created even to surpass what can be obtained from the exercise of the substantial works. The people familiar with "norm", "standard", and "proof" usually can avoid to do the risky and competitive tangible works and usually are done by the firms and organizations in the developed economies.

 

4) Stakeholders: Public, Authority, Neighborhood and Locals.

 

(1). Public

 

The public are the users of infrastructure and facilities, but they are volatile and can be convinced for opposite proposals. And it seems only the politicians claim they’re their representatives are knowing everything and the engineers have little to say for the true benefit of the public.

 

The professionals in Taiwan aren’t prestigious and dignified facing the public, instead, the media, councilors and TV host will be louder in all technical aspects than the engineers. Because the public demand 100% perfect over construction projects: budget, progress, durability, aesthetic, and functional for at all time, which are not possible in engineering, but they are spoiled because they’ve votes.

 

The politicians will take chance at the expense of the professionals, who will be depicted as pedant never knowing the true requirement of the people and the progressiveness of the society. 

Of course, there will be sometime that the public will be awakened learning politicians won't fulfill their commitment but the professionals has been tainted during the process. It’s easy in Taiwan the professionals including those from academic will be the scapegoat but their credit will never be recovered.

 

Infrastructure construction sometimes is associated with corruption and scandal, and some professionals may be involved, giving the impression that the engineers are not cleaner than the officials and councilors. So, the public is skeptical to the construction contracts and insist to have stringent supervision and they may feel comfortable when there will be supervision on top of supervision.

 

And when, most of the government agencies in charge of public construction in Taiwan openly claim that they will accept the citizens to supervise the construction works, a political approach, is a hurt to the professionals.

 

(2). Authority

 

The Authority referred here means the government agencies responsible to award permits, edit regulations, or decide the applicable codes so that the owner and the contractors shall observed for planning, design, construction, occupation and operation from initiation, completion until operation.

 

Land acquisition for public works shall be local government's responsibility, and usually it’s a procrastination process; maybe 5% of recalcitrant landowner will stop 100% of the works for commencement; and you’d see every day in Taiwan.

 

Safety measures are the critical issues that the government will demand the owners and their contractors to follow though. If incident to happen, the law and regulation will allow the authority (under Labor Ministry and their local branches) to exert severe punishment

 

It’s also possible that the public attorney can indict the representatives of the companies or institutions for crime charges. It’s also part of the reasons that the man contractors would sub-let the works to smaller companies with the ideas that the subcontractors will shoulder the responsibility.

 

Traffic diversion plans around the site in congested towns and area can be critical which the foreign companies coming to Taiwan will have difficulty to think about; but the commuters are sacrosanct. One of the impacts to urban construction, for instance, can be the use of more tower cranes in lieu of the mobile cranes.

 

Disposal for wasted and surplus material shall be subject to the grand soil reuse and disposal plan by local government; in general, the cost of excavated soil dumping is “managed” by people close to mafia and hardly the outcome is rational.

 

Utilities authority poses another problem for the developers and the contractors; outstanding drawings and missing locations cause the digs delaying and costly. Sometimes dangers would emerge.

 

License for buildings and plants shall go through the utility authority to ensure links with existing system. In Taiwan, utility company is called company, but people would think it's a kind of authority, not least they are run by government.

 

The fishing, agriculture and irrigation cooperative surely are the juridical association membered by ordinary people, but they are offered with the rights for fishing, planting and irrigation in their premises, to which any encroachment shall be bought with exorbitant price through hard negotiation.

(3). Neighborhood and Locals

 

The mentality of Nimby (Not in my back yard) affected construction very much; nuclear power plants and its refusal treatment can't be solved, for instance, as well as substations and transmission lines.

 

Roads, parks and sewers can't be built in many places as people don't want to be disturbed even for short time. The stories may be dated back to the old days that the authority abuse the power conscript land and put the people against construction down.

 

And now it goes for another extremity, for example, people don't want to accept any deflection or slight damages in their house when the excavation nearby have influence even within the tolerable value. Some of the people exercise extra judicial means to stop the works. It happens in chemical and power plants the neighborhood always cemented together to bar or interrupt construction and operation.

 

The governments of all level are relatively weak because the officers and councilors need votes; temples and churches for their grass root nature always sided with neighborhood defying the legitimate development. It's devastating but foreign and sometimes people from big city not well aware they are standing in lower ground if Buda and God aren’t stand beside them.

 

Many business people might miss the days when construction wouldn't have any problem to deal with ordinary people decades ago. But it's the democracy that people have chosen the system to defend their property and will; and as it flourishes the developers and the contractors must have patience in communication with the neighborhood and locals to move the project

 (Part 3, NTUST, 5908701)

Part 3, Advanced Civil Construction, 台科大高等土木施工學教材(2023) 

MT KAO (Blog: http://mtkaoforum31.blogspot.tw/)

(mtkaoforum31@gmail.com) 

(3)   Architects.

a. Architects are respected all over the world, for the dual roles they played as artists and engineers. In Taiwan, the laws and regulations are favored for their solo performance with the support of a powerful guild:

-        The law now accepts joint venture of the architects, but it's still the cooperation between the individuals. For building design, various disciplines of professional engineers such as structure, mechanic or electric, and certain specialty companies have to be the second-tier performers of architects of the relatively small size. It’s an arrangement sometimes may not be working and cause troubles contractually or technically.

-        As a response to the trend that modern buildings need to provide various services to meet people’s extensive demand, architects have to be organized to include more disciplines of engineers facing new design challenges. And in today’s Taiwan they have to behave more like a firm than individuals.

-        Internally, the architect boss needs to stay peace with his employees because the ever-complicated proposals offered to the client requires persisting and respectful performance of a stable team. And it’s the same as what happens to consulting firms, the boss shall place attention on the follow architects and individual engineers for their vision, responsiveness, work attitudes, remuneration, and entitlement.

Because people always deem their own performances are impeccable especially those who link their career future with fame and credential. Partnership, profit sharing, publication and fame are used as the elements to retain the talents or contrarily to become the driving force to accelerate the division.

 

b.      Like always happened in small engineering companies, senior architect usually grumbles for their follows’ impatience to demand profit and fame sharing before showing their contribution; but the hired will also complain their performance is never recognized:

-        In reality, it’s not a big market and the established architects are not easy to come to terms with employees and will choose to recruit new staff when they fail to hold royalty from the old guys. And when the number of licenses granted to the new comers are high and many of them not appreciated by the employers will start own business the competition will be harsh.

c. Recently, architects continue to plead the government for: 

- The fees allowed for public building design are calculated as fix percentage of construction price, and it is low compared to what adopted in other countries. The percentage must be adjusted. 

- The construction cost per unit area of building is low in the government budget and there must be an improvement, so the basis for design and supervision fee will be fair.

- That the cooperation with reputable international architects shouldn't be necessary as local architects are artfully good and technically competent. Should any officer look for fantastic building outline and avant-garde design, he could ask local architect to provide. Current practice inviting foreign architects playing protagonist and forcing their local partner shoulder contractual obligation are not acceptable. Though, many private developers still court international architects because the "names" will boost the sale. 

- Architects consider the responsibility of supervision during construction shall be rectified with clearer definition in the laws. There’re cases the developers and architects indicted and criminalized for putative wrong design and lax supervision years after buildings completed but damaged when incidents such as earthquakes causing troubles.   

 

(4)   Workers, Labor Gangs and Subcontractors.

a. In Taiwan and many countries, General Contractors do not own equipment and hire technicians and labors for construction. They sub-let the laboring work to gangs or subcontractors to save efforts and troubles in recruitment, efficiency upholding and advance skill learning. But commercial consideration not directly to deal with labor will lead to a situation that many General Contractors may lose ability for and access to the construction reality:

-        The commercial and contractual consideration for the frontage II players to observe the labor laws, accounting rules, safety regulation, etc., will cause change and impact for project implementation and industry.

-        There may and must be craftsmanship existed among the labors to guarantee work efficiency and quality; but the labor gangs or the subcontractors receive the payment according to rates and quantity entered in their contract with upper tier contractors, which in most cases, are under so called back to back terms.

-        The gang leaders are left with the responsibility to call in and pay the workers at fix wages disregard of what they’d have received according to the actual performance. It means that general contractors intend to transfer the risk to the labor gangs and subcontractors for anything reducing the efficiency. But there could be argument between the parties as the project is fickle and the market fluctuate vibrantly. Formal and legal intervention cannot solve the problems, and only settlement based on parties’ vital interest and concerns will stay.

b.      Originally main contractor may allocate the works to different gangs such as rebar, form work and concrete pouring, but still take care of coordination and supervision works required; and now they might ask one sub-contractor to undertake whole works with expectation that the enlarged contract value will add more cushion for sub-tier contractors to absorb shock when the situation goes wild:

-        Though engineers will draw plans, pen proposal, and check mistakes; construction work has to be carried out by labors with hands, and it's them to materialize white collar's ideas for all difficult, dirty and dangerous work environs. There was historical background when labors were in over supply, that their salaries suppressed and work condition miserable. At then, management of main contractors were able to leave the drudgery to social class distant from them.

-        There should be interfaces to be coordinated between trades of workers, and it would have been done by the site agents from main contractors. And now a major sub-contractor would take care and the assistance from the main contractors would be unnecessary. People finally would agree those supervisory staff is duplicated and cost better saved. The process continued and main contractor’s access to technical data and know how gradually diminished, so as their capability and experience of construction works.

-        Work division in Taiwanese construction industry become more vertical like fault line, i.e. a sub-tier contractor will do in situ construction while the main contractor may offer the name, provide guarantees, and take care of documentary works. The balance between upper and lower tiers contractors is broken in dire expectation to save limited amount of money while increasing risk short of coordination and supervision. A tendency inadvertently favors the parties like the gamblers rather than the professionals. 

c. Right now, the contractors undertaken the construction contracts can't find enough gangs and workers for their projects and cause delays or tender abortion in both government and private projects:

- Year by year, the demography change and economy growth start to curtail labor supply in Taiwanese construction industry. Crew number shrinks and members aged, they demand safety, reject toil, fall short in dexterity, easily to elude work commitment.

- 3years epidemic further deteriorate the situation, the authority has to change the regulation to admit more TCN (third country national) into the industry. Before, TCN were only permitted to work in public works, and now it extends to private work as all the classes of constructors are free to hire them. The amendment will be made at the second half of 2023.

- The work conditions at construction sites, compared to factories and service sector are worse, but the wage difference is not big now. 

(5)   Specialty Contractor.

a.      First the specialty contractors were envied because of the leading technology it embraced. They also enjoyed the prices and rates nearer or even better than the international average.

-        The construction history in Taiwan was recorded with people of spirit de entrepreneur scrambled to imitate, or simply request authorization of foreign technology: the construction method; equipment and machine; material engineered and manufactured.

-        The ideas to respect patent right were weak before millennium, giving time for people to learn, to make and to try, short for perfection but still enough for imitation.

-        The second stage came quickly, many of the international specialty contractors had to withdraw from Taiwan as natives took over, though maybe many of them looked weak and small.

The stories happened to work items such as diaphragm wall, grouting, travelling wagons, system formworks, and cable and tendons, all taking places within very few years.

b.      To certain degree the locals created wonders; many of them endured failures and finally smack technical Okays.

-        For one who successfully to become specialty contractor, there must be several crumbled; the speculation cost was so high considering the devotion they paid pent and the risks undertook.

-        The market is small, and the kind of infrastructure projects built is not many; so the R & D cost can hardly be distributed after long.

-        In general, the companies doing the specialty works in Taiwan can't distinguish themselves with general contractors; instead, they’re under pressure to find jobs to support their equipment, plants and crew. So, they're forced to bid the same tender package as the general contractor.

-        Then the borderline between the specialty and general contractors is blurring and the specialty contractors are not respected for their expertise.

-    Events such as labor shortage and de-carbon construction may bring prospects for the specialty contractors: precast or prefabricated element, automatic machines, green construction material such as graphene concrete. There would be sufficient motives and requirement for high minded people to join the specialty contractors.

(6)   Employers.

a. The employers pay for the construction cost and have vest-in interest for the in time and quality completion of the projects: 

- For public projects there will be elected officers and administrative in the government agencies speaking of detailed civil requirement under certain budgetary constraint; but they’ve to listen to the opinions from experts, media, and councilors. 

    A dutiful civil servant will know how and when to make compromise on different opinions, so as to plan and build a facility maximizing its value for price paid.

- For private business, it seems like the investors have tremendous power to look after for their own benefit, but it has to be bound by laws, regulations,

social opinions and various unspoken rules of democracy.

    Scrutiny is unavoidable, and also, it’s the reason that many powerful and wealthy will speak for rent-seekers.

b. The employers in developing their projects must consider rate of return higher than normal. They have to decimate risk and uncertainty that fund and banks won’t accept: 

- Among the employers or the funder’s concerns, quality and in time completion shall be most critical, but that's only fundamental. In the case of real estate, the developers must consider buyers or tenants' requirement for buildings. And for plant owners they must consider product sales and market stability. 

So, it’s a modern-day approach sometimes that the turnkey contractors will appease the owner with guarantees for product sales (in quantity and price) for long time. 

- Because long term investment security is now desired, the frontage investors should pay additional premium to guard their principle so that the ultimate capital holders are assured and pleased.

- It's 21st Century, in order to get a hedged and assurance, cost paid to notaries, law firms, inspectors, laboratories, appraisers, and certifiers can be regarded as more important than expenditures for tangible object such as concrete and steel, despite the cost compared to the additional protection for investment is big; completely different to the days when material was scarce and expensive.

-    Therefore, the competitiveness to vie a contract nowadays will include not only handling material and equipment to be incorporated into the project, but also to obtain the endorsement of the so-called independent parties. And it’s the reason why the contractors from the first world, despite their seeming expensiveness for substantial works, still can get a lot of contracts.

c. Public clients tend to be hard to deal with because they’ll be blamed for any mistake:

- They want everything to be clear and definite from day 1, but not to quantize the risk or uncertainty. Because the construction projects aren’t always the same and there won’t be standard answer. Only the professionals can offer solutions to remove the blocks huddling on the way since construction works start. 

- Theoretically, consensus must be collected before set up project goal, but the political requirement: compromise, prejudice and well wish will impede or distort the implementation. Any correction will have to undergo onerous procedural justification.

- The experts' opinions will start with who will be the experts and end in the deaf ears of bureaucrats and those who think they represent the public opinions. It’s a kind of hubris under which the professionals are frustrated and have to be mute.

- Election and office change will complicate the matters as politicians and voters are not predictable. Sometimes U-turn is necessary; consequently, projects hard to finish is everywhere over the world.

d.      Investors, private and public, are now asking the professional companies to work for them as PCM, a good system but occasionally not functional because the clients don't really delegate powers. The other extremity is the government agencies don't have their own people installed in the high positions of the project to determine how their true demand will be met in concert with financial capability known to insiders.

 (Part 2, NTUST, 5908701)

Part 2, Advanced Civil Construction, 台科大高等土木施工學教材(2023) 

MT KAO (Blog: http://mtkaoforum31.blogspot.tw/)

(mtkaoforum31@gmail.com)

3. Construction Industry and its Significance to Total Economy:

1).  An economy develops quickly if there is good infrastructure, or to lose momentum.

(1).  Quick developing economy really needs good infrastructure to keep bustling, or to lose momentum. Several years ago, in IT-savvy India, the dilapidated roads, ports, and power systems often slash several point GDP off every year while Japan, Asian tigers, and China seem not to be bothered by poorly or untimely construction of infrastructure for their economic success.

Understand the Infrastructure development is important in poverty alleviation and has a multiplier effect to enhance the efficiency and quality of manufacturing, Indian government create plans to build road network, railway, airport, power station and transmission line, to improve the connectivity between the states. The annual high economic growth rate is forecast making India now the 5th largest economy in the world. 

Always the countries begin to build infrastructure works before setting up their light and heavy industry, and service sector; and it means civil engineers will benefit from economy prosperity and then mechanical, electrical and chemical engineers. 

2).  Infrastructure projects construction stimulates demand of building material, machine and tools, furniture, and services; thus, speed up industrious development. And when economy grows, the construction market thrives.

(1).  Construction of infrastructure projects requires not only industrious product and machines but also augmenting services such as engineering, advertisement, house sales, financing transactions creating economic growth and upgrading. 

Construction will become the locomotive of the domestic economy. It’s also the reason that the state will always support the construction in terms of budgeting, resource allocation and nurture of the industry to ensure the development of the country and regions. 

(2).  On the other hand, when social and economic developments come up, the tax revenue and personal income will increase, the public and private work boom will be ensued, as individuals are more affordable to pay the mortgage and government will have more money to improve the environment that people live in.

(3).  When a country encounters an economic downturn, the quickest way to introduce a recovery and to reduce the pressing unemployment rate shall be spending as much as possible in the infrastructure as the transaction will always remain in the region. 

3).  Young countries need civil engineers to draw national development plans for years and decades up to cabinet level. It is the term “technocrats" for people with expertise hard to be replaced under different regimes. 

Possibly the political life for those technocrats will outlive the politicians embracing rival ideology for each other. Usually in a society with political parties hostile against each other, the technocrats, handling public affairs can still be allowed to stay neutral; so the plans, designs, budget and regulations they draw will be respected.

It's particularly true when the government of a state is gripped in the hands of group of conviction politicians that the technocrats may be assigned for the management of big national projects or state run enterprises. Their chance of success is high because always such kind of governments in certain developing economies will designate strategy project or industries as national pride. The means will include money and talents concentration and foreign competition fending off; and it will translate into the career longevity of the engineers. 

4).  Construction people sometimes risked to become accomplices of powerful people stealing public money. The infrastructure contracts usually involve tremendous sums and require different sub tier companies to perform the works; the illicit money is easy to hide and park. The contractors are easily to be blamed.   

(1).  Contractors always excuse the need to survive as the reason to be part of the kleptocracy, but the truth is construction contracts can be lucrative, and most of the times doesn’t show flaws. Therefore, contractors always believe the politicians are  powerful enough, and  able to protect the business man until the last moment. 

In the final reckoning, the politicians will sacrifice the contractors without hesitation, and only then the contractors will know the protection they really have is ephemeral.

 The Politicians always collaborate with the riches, so that power and wealth begat more power and wealth to allow ruling class stay forever; at least they hope so. History will tell that the exploitation of the ruled and the squander of the natural resource will finally have an end. 

(2).  There will be limit that the Powerful and the riches can spoil the nation in theory, as the economy in a country has its size. But in reality, the harm can't be controlled as there are wicket foreign governments eager to provide unstringed loans and aids in the name of infrastructure development to the irresponsible regime who may surrender everything to cash in for the cost required for ruling.  

Therefore, many developing countries with abundant resources can be end up in debt and poverty, the so-called resource curses; because the politicians and their cronies will take every advantage of the countries' limited fortune. Under the circumstance the money spent will never buy worthy and required infrastructure and civil work contractors are highly blamed.  

The bad story of construction conglomerate, Odebrecht of Brazil demonstrates the farce/tragedy in the past few years: presidents, premiers, ministers, parliamentarian, businessman and people of significant suicided, imprisoned, indicted in more than 10 countries. (http://mtkaoforum31.blogspot.com/2019/04/).

In some countries, the resources are poor but the politicians still ravenous, even will use their control of the access to the market and the people to make money. It’s so called gate keeping country.

(3).  Professionalism should be the only antidote to fight the avarice and impunity behind the organized corruption. Ethic education has to be enforced since the early days of engineers training. Of course, it needs time and patience to take effect especially in a society of obscurity.

4.  Young Engineers Must Determine the Earlier the Better in their Career, based on Personality, Talent or Linkage, to Work as:

1).    Consultant or Contractor.

2) Technical or Managerial cadet. 

3) Domestic or International figure. 

4) Employed or boss.

Before to make certain for what you really want to be, people have to understand your own:

a. Personality - introvert or extrovert, competitive or temperate, simple or sophisticated, like to work in solo or in group, daring or scrupulous, acute or blunt, commanding or compliant, polemics or suave, etc.

b. Capability - knowledge, expertise, proficiency, logic, skill, common sense, morality quotient, etc.

c. Background and experience – family, friends, teachers, seniors, neighbors, etc.

Objectively, one’s education and training are also essential for the choices, and the followings shall be considered:

a. Expertise: geotechnics, structure, architecture, hydrology and irrigation, roadwork, coastal and marine, mechanic, electric, HVAC, etc.

b. Disciplines: planning, design, construction methodology, survey and set out, supervision, drafting, progress, quality assurance and control, cost control, quantity survey, machine and plant control, contract administration, litigation, inventory, first aid, financial management, accounting, information, administration, etc.

c. Diploma, licenses, certificates, on job training, etc.

d. Professional " skill": complex problem solving, critical thinking, creativity, people management, coordinating with others, emotional intelligence, judgement and decision making, service orientation, negotiation, and cognitive flexibility, though not to be stringently followed but meaningful in the practice.

Subjectively, Young engineers with appropriate attitude, inspiring leadership, sensitive to the humanity, knowing the industry trend and market change, are the winners among the professionals.

5.  The Modern Construction Industry and its Major Players:

    

1).  Frontage Players:

(1) General Contractors:

a. In most countries (markets), general contractors are leaders of construction industry commanding critical portion of resource and exercising vast influence in democratic government and authoritative regimes alike. Wherever their interests go, the construction tycoons can decide how infrastructure projects are done, and affect politic at different levels.

Given the imagination that big construction company always have the clout to maneuver for what they want, young talents flock to them before they know the industry. The stories of power and money associated with construction projects are tellingly true from country to country as the industry get momentum to grow and prosper before any other business have chances to evolve.

b. However, in countries like Taiwan, the wary authority and public are too eager to see the competition flared among the contractors and always think it's a good way to save government expenditure. So, every contracting procedure related to public works from budget allocation till their completion is mired with details presumed to plague constructors so public interest can be safeguarded. There it develops a mentality that the consultants responsible for design and supervision can be more trust-able to protect public interest in the ceaseless feuding with pigheaded contractors.

As a result, the bureaucrats and public prefer to ask the contractors to do the works according to what had been specified on the drawings, i.e. pure construction; they believe they would be able to prevent collusion by squeezing the space normally granted to designer and contractor for settling the ensuing conflict.

c. The purposed regulation as explained above existed so long has weaken the contractors; besides, in a society much influenced by Confucian culture, the traditional teaching that the scholars are superior to any other social classes further reinforce the prejudice that the employees of constructors working outdoors under all-weather would be secondary to pedants shouting instructions in the air conditioned rooms.

Finally, the employees of general contractors have to do the grinding part of the works to ensure punctual completion and well-functioning of the projects, which is nerve raking throughout entire contract period. And in return construction engineers only received diminishing amount of pay under constant annoyance that the threshold for tenderer to cross is lowered time after time allowing more people to contend.

d. It's true that general contractors in Taiwan were not so privileged compared to the coddled consulting firms because of some historical and cultural reasons. However, constructor of the 21st century should not only be able to deliver timely and quality completion of the projects, he needs also to give the clients solutions for challenges and risks brought by exceptional design, complicated operation and maintenance systems, special environmental protection requirement, unique financial arrangement; and it means, the imbalance between the images of general contractors and consulting firms now tilts a little bit toward the former.

It's also good for general contractors in Taiwan that the procurement laws and regulations overhauled in recent years: design and build contracts are welcome; division of business lines now blurred; BOT or BT style of contracting are taken and design consultants can be put under sovereignty of general contractors; projects become more sizable and fit for companies with bigger assets; labor law is more sensible thus favorable the contractors' employees who used to work in onerous long hours.

The trend compels owners, governmental or private, to accept more reasonable and liberal form of contracting, so that the constructors can pursue expertise and efficiency they need for true competition. Obviously, general contractors burdened with less red tape and enjoyed elevated status, are the biggest winners in the change

(綜合承商簽約金額龐大，掌握資源，對基礎工程是否、或如何施作有影響力，甚至介入政治。在許多國家，工程先於其他產業發展，為錢與權力結合之最明顯例證。

台灣之工程業，自早期因公眾將成本經費置於優位，政府主其事者亦鼓勵競爭，故設計監造者必站在施工者對立面，土木營造必與機電設備承商分業。因此於初期，綜合承商受眾多限制，只能按圖施工，再加上儒家思想認不動手設計者需有高學歷，較為尊重，顧問公司工作者相對有優越感。

目前新形勢，統包盛行，工程漸趨複雜化，綜合承商空間較前為大，其經理人與工程師需付較重責任，相對權力、薪酬與社會地位也將提高，此發展應為正面。)

(2) Consulting Engineers:

a. The difference between the professionals and occupational regarding business ethics and attitude is that the former's must be dutiful, intelligent and conscientious for their clients and the latter do their works following the orders. To honor and guard the professionalism, the professional decisions in no way should be compromised, twisted and altered by particular one's interest, thronged opinions, or any form of punishment.

When engineers' re trusted and confided with responsibilities for safety, functioning, aesthetic, durability, budgeting and sturdy completion of construction projects, their judgement, opinions, and integrity must be respected, and most important, their service must be remunerated fairly as it's the backbone to support the idea that the professionals are the brains of their client.

b. The professionalism allotted to engineers usually include investigation, feasibility study, planning, design, supervision, project management and other services related to civil and building works, both public and private. In Taiwan, how the engineering service is practiced is sanctioned in "Professional Engineer Act":

    Article 7 A professional engineer shall practice the profession in any of  

      the following manners:

      1. Establish an engineering office organized as a sole proprietorship or                            partnership. 

      2. Establish a professional engineering consulting firm or be hired by one.

      3. Hired by a profit-seeking enterprise or entity, other than those mentioned   in            the preceding      

      subparagraph, which is required by law to hire a licensed professional engineer.

c. If we trace the history, we will know that professional engineering service was originally taken by individual engineers or the partnership they formed. In modern-days, projects for all complex nature not only require advanced technology; but also need proposals with exceptional commercial skill to augment chances of as-planned completion or to seek ways of meaningful mitigation. So, it takes kind of "omniscient "corporation consisting of bright people who are able to offer inclusive solutions at all times.

Apparently, the professionals can well exercise their knowledge and skill disregard what their choice to sign the contracts in "proprietorship", "partnership" or "corporation", but the industrial reality is that a corporation big enough may be better to accumulate experience, possess data, search for information, and churn out proposals.

Yes, only they are big they can have lots of talents adhered to share office equipment and software cost and are more affordable to meet the client's fastidious demands. Besides, financing, accounting, and administration rendered by big corporation will support the engineer for activities now needed to be more expeditious but intact, which can hardly be found in partnership and small company.

It's understandable when the clients want to make award the engineering jobs of multi-discipline nature, they feel more comfortable to engage with organizations of size and reputation. But such an observation shall not be over interpreted as that the big corporation doesn't have any problem in performance and cost.

d. So, a lot of clients today when want to make award of the engineering jobs of multi-discipline nature, they feel more comfortable to engage with organizations of size and reputation. But such an observation shall not be over interpreted as that the big corporation doesn't have any problem in performance and cost.

But it’s just a trend and shall not be over interpreted as that the big corporations may have their own problem in performance and cost.

e. We all know the professionalism stems from individualism and entails characteristics unique to each professional: vision, responsibility, work attitudes, which shall be prerequisite to shape a concerted team undertaking sophisticated engineering works in competition with individual or more coherent partnership for efficiency and responsiveness.

Remuneration to the professionals remains a big problem in managing engineering companies as people always view their own performance impeccable and believes they are entitled for more than regular salary and bonus. The arguments often focused in profit sharing, and stays at every junction where company elite flaunt their eminence. People may imagine there could be a terminal arbiter in big engineering company busy to dole out verdicts to assure everybody's material and vanity reward will be met, but that's not realistic. 

For small engineering companies, the bosses usually grumble for the employees’ impatience to demand profit sharing before showing their contribution; but the hired will also complain their performance is never recognized.

The wish wise men may be there for positive intervention is a pipe dream in the real world; instead, egocentric human nature will prevail. Discords and disputes always happen between the quarreling parties, and the burst out usually take the form that people arguing over things abstract and philosophic like vision, responsibility, work attitudes, but money is behind, if contradiction not solved the result will be exodus of high minded people, or the cooling down of remaining people's motives to learn new skill and knowledge.

Modern professionals’ firms will use options such as extended partnership or stock warrant awarding to employees to keep their loyalty. It's important because many people consider the company's gain is only possible with their affectionate engagement and they're deserved to share profit as partners. The idea is different with the bonus and prizes scheme applied for companies to sell material, product, or simple services; requiring employees clinging to positions and to do more or less countable works.

The idea is different with the bonus and prizes scheme applied for companies to sell material, product, or simple services; which only ask employees sticking to positions and to do works countable and not unique for individuals. It may not be suitable for sizable and sophisticated consultancy; but a practice in Taiwan for national enterprises.

f. In Taiwan, the government handled the importation of construction technology closely during the days that the resources were scarce, and many of the engineers were trained on jobs like dam, petrochemical complex, expressway and military installations. To counter balance the more advanced international companies, the government then sponsored big consulting and construction firms with the view that they could be reliable and competitive to carry out public work for the future.

Years after, the government was forced to withdraw from the construction companies sponsored as private contractors won over contention. However, the public consulting firms still remain and dominant in the engineering market, as they still receive the trust and patronage of government agencies anxious to launch infrastructure projects.

The arrangement can solve remuneration problem in many professionals’ firms, however, it's not elixir for small engineering companies, the bosses of which always grumbled that the employees are impatient to demand profit sharing before showing contribution; but the hired complained their performance not recognized all the time.

g. The government funded consultants pay their engineers of salary, bonus and dividends similar to what has been arrayed in other public enterprises of much less professionalism content. The practice omit that the services originally are individual-oriented and in the case of corporation the people must fetch not much less than their colleagues under sole proprietorship or partnership. Over time the side effect not pay enough to professionals will appear: efficiency discounted, talent lost to other industries, projects other than routinely implemented need to be done by international consultants.

The government funded consultants are more obedient to follow contract terms arbitrarily interpreted by public servants short of flexibility in forecasting project requirement and rectifying them later. So, the government agencies prefer to award sizable engineering works to government funded consultants and thus strengthen their dominant position in the industry despite private design firms always crying foul saying that the state shouldn't interfere the market.  

It's nothing wrong in a society actually embraces egalitarianism and hates to pay some of professions high price to continue the practice contracting with government funded consultants for low cost and in time delivery of engineering works as a safety play of the officials..

But when technology bred domestically may not be sufficiently advanced as the result of individual's lacking of incentives because there’s only one buyer for the public works-the government. The foreign consultants or architects will be eager to fill technical gap but only at dear prices. 

And any attempt that the government agencies to ask affiliated firms to bridge the difference in terms of price and contractual obligation will only to bring further procrastination and induce secondary damages as the one who really have to deliver the works will have leeway to dodge their responsibility.

(專業工程師掌握工程成敗、經費、品質良劣，業主賴之。早期設計、監造，係由具自信與自尊之個人技師、工匠或專家個人名義或形態擔任，現大工程須為擁百、千人之顧問公司承擔，惟台灣之技師法，仍要求專業人員在其能力、判斷、與倫理對業主負責，由字句語義，可看出立法原意，然在實務上，工程變成大而複雜，如何讓團隊發揮效率，又不出錯，是顧問公司經營挑戰。

但台灣工程發展壯大經過，可看出從早期技術須由國外引進時，都由政府統一辦理，以圖利用及掌控有限之資源；或因社會變遷，民間實力增強，故政府力量就由施工方面撤退，但因信心關係，在設計顧問業仍為其掌握。故台灣在工程產業仍有廻異於先進國家之處，此可由公共工程費率、合約條件、乃至顧問公司經理與資深工程師薪酬等看得出來。)